Emad Mostaque has resigned as CEO of Stability AI. In a press release on Friday evening, Stability AI stated that Mostaque is leaving the company "to pursue decentralized artificial intelligence." Mostaque will also step down from the board of directors of Stability AI.

The board has appointed two interim co-CEOs to lead Stability AI - Chief Operating Officer Shan Shan Wong and Chief Technology Officer Christian Laforte, while searching for a permanent CEO. "In the process of finding a permanent CEO, I have full confidence that Shan Shan Wong and Christian Laforte, as interim co-CEOs, will skillfully guide the company forward, developing and commercializing industry-leading generative artificial intelligence products," said Jim O'Shaughnessy, Chairman of the Stability AI board.

Driving the development of commercialized artificial intelligence products is likely a major reason for Mostaque's resignation. "It is impossible to defeat centralized artificial intelligence with more centralized artificial intelligence," Mostaque wrote in a post on X after resigning. "Now is the time to ensure that artificial intelligence remains open and decentralized," Mostaque stated in another statement.

This week has been dramatic in the artificial intelligence startup world

Mostaque's departure comes just days after Forbes reported that Stability AI was in trouble and other key developers had resigned. Recently, three out of five researchers behind the creation of Stable Diffusion technology left the company. Leadership changes at Stability AI also occurred at rival startup Inflection AI. Inflection AI experienced a week of talent being acquired by Microsoft.

Earlier this week, Mustafa Suleyman, co-founder of Google DeepMind and former CEO of Inflection AI, joined Microsoft as CEO of the new AI team. Microsoft also hired several key employees from Inflection AI, including co-founder Karén Simonyan, who now serves as Chief Scientist of Microsoft AI. Most of Inflection's employees will join Microsoft AI, shifting the focus of the AI startup towards enterprise services.

Stability's flagship AI product, Stable Diffusion, has been widely used as a generative AI tool for text-to-image conversion. Stability recently released its latest model, Stable Cascade, on GitHub as a researcher's choice. Stability AI also started offering paid membership services in December to commercialize its models and fund its research.

Stability AI has popularized the AI approach of Stable Diffusion but is facing a lawsuit regarding the data used to train Stable Diffusion. A lawsuit filed by Getty Images in the UK is set to go to trial, which could be a pivotal moment for the legislative framework of generative AI products.